By Paul A. Harris
St. Louis, May 15 - Health Net Inc. priced a $300 million issue of 6 3/8% 10-year senior notes (Ba2/BB+) at a 170 basis point spread to Treasuries on Tuesday, according to an informed source.
The spread came at the tight end of the Treasuries plus 170 to 175 bps price talk.
The notes priced at an original issue discount of 99.769 to yield 6.406%.
JP Morgan, Banc of America Securities LLC and Citigroup were joint bookrunners for the quick-to-market public transaction.
Proceeds will be used to repay bank debt.
The issuer is a Woodland Hills, Calif., managed health care company.
| Issuer: | Health Net Inc.
|
| Amount: | $300 million
|
| Maturity: | June 1, 2017
|
| Security description: | Senior notes
|
| Bookrunners: | JP Morgan, Banc of America Securities LLC, Citigroup
|
| Coupon: | 6 3/8%
|
| Price: | 99.769
|
| Yield: | 6.406%
|
| Spread: | 170 bps
|
| Call protection: | Non-callable with a Treasuries plus 30 bps make-whole provision
|
| Trade date: | May 15
|
| Settlement date: | May 18
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | Public
|
| Price talk: | Treasuries plus 170 to 175 bps
|
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